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Osio Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant fange of production is 500 units
Osio Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant fange of production is 500 units to 1,500 units): Required: Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed in other words, assume that the total variable expenses are $6,468 and the total fxed expenses are $12,200. Given this scenario, and assuming that total sales remain the same, calculate the degree of operating leverage. Using the calculated degree of operating leverage, what is the estimated percent increase in net operating income of a 3 N increase in sales? (Do not round intermediate calculations. Pound your answer to 2 decimal pinces.)
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